Project Management

What is Project?
• A temporary endeavor undertaken to create a
unique product or service
(PMI, 2001)

A set of activities with an aim to acheive a certain goal

within stipulated time frame consuming specific
resources
Project Targets

Performance
Cost

Time

To acheive goal
Characteristics of Project
• One time activity with quantifiable end results
• Existance of life cycle in project duration
• Set of Constraints
• Interdependance
• Uniqueness
Approach to Constant Improvement

Plan Three Phases of PM

Design it
Do it
Develop it
Act Do

Check
Project as a Conversion Process
Constraints
Financial, Legal, Ethical, Environmental
and so on

Input Project Output

• Energy • Mechanism • Satisfaction

• Resource • People
• Know-how
• Capital
• Technology
What is Project Management?

Project + Management

Planning, Organizing
Specific Goal
Staffing, Leading,
Specific Resources
Controlling towards
Specific Time Frame
goal attainment
Development of Project Management
• Expansion of knowledge and more segregation in
academic discipline
• Complex demand for goods and services
• Globalization
– Cultural
– Environmental
Stages of Project Management
Define

Plan

Implement

Monitor Adjust

Evaluate

Celebrate 
 Project Management Coverage
Earth/Universe Level

Project Management
is the tool to achieve
Goals at any level-

Company Level
By initiating task, action
and activity
National Level
Regional/Inter-continental Level
Work breakdown structure
• A method of breaking down a project into individual
elements ( components, subcomponents, activities and
tasks) in a hierarchical structure which can be scheduled
• It defines tasks that can be completed independently of
other tasks, facilitating resource allocation, assignment of
responsibilities and measurement and control of the
project
• It is foundation of project planning
• It is developed before identification of dependencies and
estimation of activity durations
• It can be used to identify the tasks in the CPM and PERT
Work Breakdown Structure for Computer Order
Processing System Project
Project Scheduling and Control Techniques
Gantt Chart
Critical Path Method (CPM)
Program Evaluation and Review Technique (PERT)
 Gantt Chart
Graph or bar chart with a bar for each project activity that shows
passage of time
Provides visual display of project schedule
 Gantt chart

Advantages Limitations
- Gantt charts are quite commonly - Do not clearly indicate details
used. They provide an easy graphical regarding the progress of activities
representation of when activities
(might) take place. - Do not give a clear indication of
interrelation ship between the
separate activities
CPM - Critical Path Method

• Definition: In CPM activities are shown as a network of

precedence relationships using activity-on-node network
construction
– Single estimate of activity time
– Deterministic activity times

USED IN : Production management - for the jobs of

repetitive in nature where the activity time estimates can
be predicted with considerable certainty due to the
existence of past experience.
PERT -
Program Evaluation & Review Techniques

• Definition: In PERT activities are shown as a network of

precedence relationships using activity-on-arrow network
construction
– Multiple time estimates
– Probabilistic activity times

USED IN : Project management - for non-repetitive

jobs (research and development work), where the time
and cost estimates tend to be quite uncertain. This
technique uses probabilistic time estimates.
CPM/PERT
• Deficiencies (in Gantt Chart) can be eliminated to a large
extent by showing the interdependence of various activities
by means of connecting arrows called network technique.

• Overtime CPM and PERT became one technique

• ADVANTAGES:
– Precedence relationships
– large projects
– more efficient
 Project Network
Network analysis is the general name given to certain specific techniques
which can be used for the planning, management and control of projects

• Use of nodes and arrows

Arrows  An arrow leads from tail to head directionally
– Indicate ACTIVITY, a time consuming effort that is required to
perform a part of the work.
Nodes  A node is represented by a circle
- Indicate EVENT, a point in time where one or more activities start
and/or finish.
• Activity
– A task or a certain amount of work required in the project
– Requires time to complete
– Represented by an arrow
• Dummy Activity
– Indicates only precedence relationships
– Does not require any time of effort
 Project Network
• Event
– Signals the beginning or ending of an activity
– Designates a point in time
– Represented by a circle (node)
• Network
– Shows the sequential relationships among activities using nodes
and arrows

Activity-on-node (AON)
nodes represent activities, and arrows show precedence
relationships
Activity-on-arrow (AOA)
arrows represent activities and nodes are events for points in time
 Network Diagram

• A Network Diagram is a visual representation of a

project’s schedule.

• A network diagram in project management is useful

for planning and tracking the project from beginning
to finish. It represents a project’s critical path as well
as the scope for the project.
Network Diagram
AOA Project Network for House

3
Lay Dummy
foundation
2 0 Build Finish
3 1 house work
1 2 4 6 7
Design house Order and 3 1
and obtain receive Select 1 1 Select
financing materials paint carpet
5

AON Project Network for House

Lay foundations Build house
2 4
Finish work
2 3
7
Start 1 1
3
Design house and 6
3
obtain financing 5 1
1
1 Select carpet
Order and receive
Select paint
materials
 Situations in network diagram
B
A A must finish before either B or C can start

C
A
C both A and B must finish before C can start
B
A C both A and B must finish before either of C
B or D can start
D

A B
A must finish before B can start
Dummy both A and C must finish before D can start
C
D
Activity-on-Node Fundamentals

FIGURE 6.2
Activity-on-Node Fundamentals (cont’d)

FIGURE 6.2 (cont’d)

Activity-on-Arrow Network Fundamentals

FIGURE A6.2
Activity-on-Arrow Network Fundamentals

FIGURE A6.2 (cont’d)

 CPM calculation

• Path
– A connected sequence of activities leading from the
starting event to the ending event
• Critical Path
– The longest path (time); determines the project
duration
• Critical Activities
– All of the activities that make up the critical path
 Determining Slack (or Float)
• Free Slack (or Float)
– The amount of time an activity can be delayed without
delaying connected successor activities

• Total Slack
– The amount of time an activity can be delayed without
delaying the entire project

• The critical path is the network path(s) that has (have) the
least slack in common.
Network Information

TABLE 6.1
Koll Business Center—Partial Network

FIGURE 6.3
Koll Business Center—Complete Network

FIGURE 6.4
Exercise: Network Diagram
Exercise: Network Diagram
 Project Crashing
• Crashing
– reducing project time by expending additional
resources
• Crash time
– an amount of time an activity is reduced
• Crash cost
– cost of reducing activity time
• Goal
– reduce project duration at minimum cost
Activity crashing

Crash
cost Crashing activity

Slope = crash cost per unit time

Normal Activity
Normal
cost
Normal
time
Crash Activity time
time
 Project Crashing Solution!

Yes, the project duration can be reduced by

assigning more resources to project activities. But,
doing this would somehow increase our project cost!
How do we strike a balance?
■ Project crashing is a method for shortening project
duration by reducing one or more critical activities
to a time less than normal activity time.

39
Project Crashing and Time-Cost Trade-Off

Crash cost & crash time have a linear relationship:

Total Crash Cost $2000


Total Crash Time 5 weeks
 $400 / wk

Copyright © 2010
 Project Crashing and Time-Cost Trade-Off
Example

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

 Exercise-PERT Network

• A project schedule has the following characteristics:

Activity Time Activity Time

1-2 4 5-6 4
1-3 1 5-7 8
2-4 1 6-8 1
3-4 1 7-8 2
3-5 6 8-10 5
4-9 5 9-10 7
Exercise-PERT Network
 Practice Example
A social project manager is faced with a project with the following
activities:
Activity Description Duration

Social work team to live in village 5w

Social research team to do survey 12w

Analyse results of survey 5w

Establish mother & child health program 14w

Establish rural credit programme 15w

Carry out immunization of under fives 4w

Draw network diagram and show the critical path.

Calculate project duration.
 Practice problem
Activity Description Duration
1-2 Social work team to live in village 5w
1-3 Social research team to do survey 12w
3-4 Analyse results of survey 5w
2-4 Establish mother & child health program 14w
3-5 Establish rural credit programme 15w
4-5 Carry out immunization of under fives 4w

4
2

1 5
3
THE END